Dr Reddys Laboratories

28 Jan 2022 , 05:15 PM

For the quarter ending Dec 2021, consolidated Net sales (including other operating income) of Dr Reddys Laboratories has increased 8.02% to Rs 5338.3 crore compared to quarter ended Dec 2020.?

Sales of Pharmaceutical Services segment has gone up 1.98% to Rs 901.60 crore (accounting for 16.39% of total sales).??Sales of Global Generics segment has gone up 9.29% to Rs 4,456.50 crore (accounting for 81.03% of total sales).??Sales of Proprietary Products segment rose 4.03% to Rs 12.90 crore (accounting for 0.23% of total sales).??Sales of Others segment has gone down 8.71% to Rs 128.90 crore (accounting for 2.34% of total sales).??Inter-segment sales came down from Rs 173.60 crore to Rs 161.60 crore.??

Profit before interest, tax and other unallocable items (PBIT) has jumped 7.82% to Rs 2,861.60 crore.??PBIT of Pharmaceutical Services segment fell 7.60% to Rs 164.10 crore (accounting for 5.73% of total PBIT).??PBIT of Global Generics segment rose 9.71% to Rs 2,573.20 crore (accounting for 89.92% of total PBIT).??PBIT of Proprietary Products segment rose 29.00% to Rs 12.90 crore (accounting for 0.45% of total PBIT).??PBIT of Others segment fell 8.01% to Rs 111.40 crore (accounting for 3.89% of total PBIT).??

PBIT margin of Pharmaceutical Services segment fell from 20.09% to 18.20%.??PBIT margin of Global Generics segment rose from 57.52% to 57.74%.??PBIT margin of Proprietary Products segment rose from 80.65% to 100.00%.??PBIT margin of Others segment rose from 85.76% to 86.42%.??Overall PBIT margin rose from 51.88% to 52.03%.??

Operating profit margin has jumped from 10.91% to 22.77%, leading to 125.42% rise in operating profit to Rs 1,215.70 crore.??Raw material cost as a % of total sales (net of stock adjustments) decreased from 22.81% to 14.17%. ??Purchase of finished goods cost rose from 13.18% to 20.16%. ??Employee cost increased from 17.74% to 17.82%. ??Other expenses fell from 35.82% to 25.19%. ??Selling and administration expenses rose from 24.26% to 25.10%. ??

Other income fell 20.85% to Rs 55.8 crore.??PBIDT rose 108.51% to Rs 1271.5 crore.??Provision for interest rose 14.89% to Rs 21.6 crore.??

PBDT rose 111.49% to Rs 1249.9 crore.??Provision for depreciation fell 5.46% to Rs 294.2 crore.??

Profit before tax grew 241.57% to Rs 955.70 crore.??Share of profit/loss was 22.52% higher at Rs 18.5 crore.??Provision for tax was expense of Rs 264.9 crore, compared to Rs 267 crore.??Effective tax rate was 27.19% compared to 90.54%.

Minority interest was nil in both the periods.??Net profit attributable to owners of the company increased 2,442.29% to Rs 709.30 crore.??

Promoters stake was 26.72% as of 31 December 2021 ,compared to 26.73% as of 31 December 2020 .??

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Dr Reddys Laboratories has increased 12.54% to Rs 16070.3 crore.??Sales of Pharmaceutical Services segment has gone down 4.01% to Rs 2,818.30 crore (accounting for 17.05% of total sales).??Sales of Global Generics segment has gone up 15.15% to Rs 13,328.80 crore (accounting for 80.65% of total sales).??Sales of Proprietary Products segment rose 407.14% to Rs 142.00 crore (accounting for 0.86% of total sales).??Sales of Others segment has gone down 2.31% to Rs 236.80 crore (accounting for 1.43% of total sales).??Inter-segment sales came down from Rs 502.40 crore to Rs 455.60 crore.??

Profit before interest, tax and other unallocable items (PBIT) has jumped 9.51% to Rs 8,510.70 crore.??PBIT of Pharmaceutical Services segment fell 21.41% to Rs 544.40 crore (accounting for 6.40% of total PBIT).??PBIT of Global Generics segment rose 11.32% to Rs 7,644.00 crore (accounting for 89.82% of total PBIT).??PBIT of Proprietary Products segment rose 476.23% to Rs 140.60 crore (accounting for 1.65% of total PBIT).??PBIT of Others segment fell 3.35% to Rs 181.70 crore (accounting for 2.13% of total PBIT).??

PBIT margin of Pharmaceutical Services segment fell from 23.59% to 19.32%.??PBIT margin of Global Generics segment fell from 59.32% to 57.35%.??PBIT margin of Proprietary Products segment rose from 87.14% to 99.01%.??PBIT margin of Others segment fell from 77.56% to 76.73%.??Overall PBIT margin fell from 52.58% to 51.50%.??

Operating profit margin has jumped from 19.73% to 20.60%, leading to 17.51% rise in operating profit to Rs 3,310.00 crore.??Raw material cost as a % of total sales (net of stock adjustments) decreased from 21.93% to 16.54%. ??Purchase of finished goods cost rose from 12.72% to 18.93%. ??Employee cost decreased from 18.36% to 17.86%. ??Other expenses fell from 28.09% to 26.38%. ??Selling and administration expenses rose from 23.56% to 25.22%. ??

Other income rose 76.82% to Rs 369.2 crore.??PBIDT rose 21.61% to Rs 3679.2 crore.??Provision for interest fell 4.46% to Rs 64.3 crore.??

PBDT rose 22.20% to Rs 3614.9 crore.??Provision for depreciation fell 5.20% to Rs 872.2 crore.??

Profit before tax grew 34.56% to Rs 2,742.70 crore.??Share of profit/loss was 98.67% higher at Rs 59.8 crore.??Provision for tax was expense of Rs 717 crore, compared to Rs 674 crore.??Effective tax rate was 25.58% compared to 32.59%.

Minority interest was nil in both the periods.??Net profit attributable to owners of the company increased 49.57% to Rs 2,085.50 crore.??

Promoters stake was 26.72% as of 31 December 2021 ,compared to 26.73% as of 31 December 2020 .??

Full year results analysis.

Net sales (including other operating income) of Dr Reddys Laboratories has increased 8.74% to Rs 19047.5 crore.??Sales of Pharmaceutical Services segment has gone up 22.43% to Rs 3,928.40 crore (accounting for 19.90% of total sales).??Sales of Global Generics segment has gone up 11.93% to Rs 15,475.90 crore (accounting for 78.41% of total sales).??Sales of Proprietary Products segment fell 93.42% to Rs 52.30 crore (accounting for 0.26% of total sales).??Sales of Others segment has gone up 1.19% to Rs 281.40 crore (accounting for 1.43% of total sales).??Inter-segment sales rose Rs 591.00 crore to Rs 690.50 crore.??

Profit before interest, tax and other unallocable items (PBIT) has jumped 9.63% to Rs 10,309.50 crore.??PBIT of Pharmaceutical Services segment rose 51.86% to Rs 944.40 crore (accounting for 9.16% of total PBIT).??PBIT of Global Generics segment rose 16.14% to Rs 9,111.10 crore (accounting for 88.38% of total PBIT).??PBIT of Proprietary Products segment fell 93.78% to Rs 48.20 crore (accounting for 0.47% of total PBIT).??PBIT of Others segment rose 26.57% to Rs 205.80 crore (accounting for 2.00% of total PBIT).??

PBIT margin of Pharmaceutical Services segment rose from 19.38% to 24.04%.??PBIT margin of Global Generics segment rose from 56.74% to 58.87%.??PBIT margin of Proprietary Products segment fell from 97.42% to 92.16%.??PBIT margin of Others segment rose from 58.47% to 73.13%.??Overall PBIT margin rose from 51.93% to 52.23%.??

Operating profit margin has jumped from 14.10% to 20.32%, leading to 56.65% rise in operating profit to Rs 3,869.90 crore.??Raw material cost as a % of total sales (net of stock adjustments) increased from 17.06% to 21.65%. ??Purchase of finished goods cost fell from 14.55% to 12.97%. ??Employee cost decreased from 19.32% to 18.30%. ??Other expenses fell from 34.94% to 27.57%. ??Selling and administration expenses fell from 25.35% to 24.16%. ??

Other income fell 53.05% to Rs 291.4 crore.??PBIDT rose 34.63% to Rs 4161.3 crore.??Provision for interest fell 1.32% to Rs 97 crore.??Loan funds rose to Rs 3,030.80 crore as of 31 March 2021 from Rs 1,783.60 crore as of 31 March 2020.??Inventories rose to Rs 4,541.20 crore as of 31 March 2021 from Rs 3,506.70 crore as of 31 March 2020.??Sundry debtors were lower at Rs 4,964.10 crore as of 31 March 2021 compared to Rs 5,027.80 crore as of 31 March 2020.??Cash and bank balance rose to Rs 1,482.90 crore as of 31 March 2021 from Rs 205.30 crore as of 31 March 2020.??Investments rose to Rs 2,807.70 crore as of 31 March 2021 from Rs 2,677.80 crore as of 31 March 2020 .??

PBDT rose 35.81% to Rs 4064.3 crore.??Provision for depreciation rose 5.65% to Rs 1228.8 crore.??Fixed assets increased to Rs 9,210.90 crore as of 31 March 2021 from Rs 7,894.10 crore as of 31 March 2020.??Intangible assets increased from Rs 491.30 crore to Rs 559.90 crore.??

Profit before tax grew 54.98% to Rs 2,835.50 crore.??Share of profit/loss was 14.44% lower at Rs 48 crore.??Provision for tax was debit of Rs 931.9 crore, compared to credit of Rs 140.3 crore.??Effective tax rate was 32.32% compared to negative 7.44%.

Minority interest was nil in both the periods.??Net profit attributable to owners of the company decreased 3.67% to Rs 1,951.60 crore.??

Equity capital increased from Rs 83.10 crore as of 31 March 2020 to Rs 83.20 crore as of 31 March 2021.??Per share face Value remained same at Rs 5.00.??

Promoters stake was 26.74% as of 31 March 2021 ,compared to 26.75% as of 31 March 2020 .??

Cash flow from operating activities increased to Rs 3,570.30 crore for year ended March 2021 from Rs 2,984.10 crore for year ended March 2020.??Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 1,256.10 crore, compared to Rs 611.50 crore during the year ended March 2020.??

Other Highlights

In Q3 FY22, Global generics segment grew 9%, North America grew 7%, Europe down 2%, India up 7%, Emerging markets up 20%, PSAI up 4%, and Proprietary products and others down 8% compared to Q3 FY21.

In Q3 FY22, North America contributed 35% of total revenue, Europe 8%, India 19%, Emerging markets 21%, PSAI 14% and others 3%.

During the quarter ended Dec 2021, R&D expense stood at Rs 420 crore (7.8% of total sales).

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Dr Reddys Laboratories : Consolidated Results
?	Quarter ended	Year to Date	Year ended
Particulars	202112	202012	Var.(%)	202112	202012	Var.(%)	202103	202003	Var.(%)
Net Sales (including other operating income)	5,338.30	4,941.90	8.02	16,070.30	14,279.30	12.54	19,047.50	17,517.00	8.74
OPM (%)	22.77	10.91	1,186 bps	20.6	19.73	87 bps	20.32	14.1	621 bps
OP	1,215.70	539.3	125.42	3,310.00	2,816.70	17.51	3,869.90	2,470.40	56.65
Other Inc.	55.8	70.5	-20.85	369.2	208.8	76.82	291.4	620.6	-53.05
PBIDT	1,271.50	609.8	108.51	3,679.20	3,025.50	21.61	4,161.30	3,091.00	34.63
Interest	21.6	18.8	14.89	64.3	67.3	-4.46	97	98.3	-1.32
PBDT	1,249.90	591	111.49	3,614.90	2,958.20	22.2	4,064.30	2,992.70	35.81
Depreciation	294.2	311.2	-5.46	872.2	920	-5.2	1228.8	1163.1	5.65
PBT	955.7	279.8	241.57	2742.7	2038.2	34.56	2835.5	1829.6	54.98
Share of Profit/(Loss) from Associates	18.5	15.1	22.52	59.8	30.1	98.67	48	56.1	-14.44
PBT before EO	974.2	294.9	230.35	2802.5	2068.3	35.5	2883.5	1885.7	52.91
EO Income	0	0	–	0	0	–	0	0	–
PBT after EO	974.2	294.9	230.35	2802.5	2068.3	35.5	2883.5	1885.7	52.91
Taxation	264.9	267	-0.79	717	674	6.38	931.9	-140.3	PL
PAT	709.3	27.9	2,442.29	2085.5	1394.3	49.57	1951.6	2026	-3.67
Minority Interest (MI)	0	0	–	0	0	–	0	0	–
Net profit	709.3	27.9	2,442.29	2085.5	1394.3	49.57	1951.6	2026	-3.67
P/(L) from discontinued operations net of tax	0	0	–	0	0	–	0	0	–
Net profit after discontinued operations	709.3	27.9	2,442.29	2085.5	1394.3	49.57	1951.6	2026	-3.67
EPS (Rs)*	42.62	1.68	2,442.29	125.32	83.78	49.57	117.27	121.74	-3.67
* EPS is on current equity of Rs 83.21 crore, Face value of Rs 5, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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Dr Reddys Laboratories : Consolidated Segment Results
?	Quarter ended	Year to Date	Year ended
?	% of (Total)	202112	202012	Var.(%)	% of (Total)	202112	202012	Var.(%)	% of (Total)	202103	202003	Var.(%)
Sales	?	?	?	?
Pharmaceutical Services	16.39	901.6	884.1	1.98	17.05	2,818.30	2,936.10	-4.01	19.9	3,928.40	3,208.60	22.43
Global Generics	81.03	4,456.50	4,077.80	9.29	80.65	13,328.80	11,575.20	15.15	78.41	15,475.90	13,826.40	11.93
Proprietary Products	0.23	12.9	12.4	4.03	0.86	142	28	407.14	0.26	52.3	794.9	-93.42
Others	2.34	128.9	141.2	-8.71	1.43	236.8	242.4	-2.31	1.43	281.4	278.1	1.19
Total Reported Sales	100	5,499.90	5,115.50	7.51	100	16,525.90	14,781.70	11.8	100	19,738.00	18,108.00	9
Less: Inter segment revenues	?	161.6	173.6	-6.91	?	455.6	502.4	-9.32	?	690.5	591	16.84
Net Sales	100	5,338.30	4,941.90	8.02	100	16,070.30	14,279.30	12.54	100	19,047.50	17,517.00	8.74
PBIT	?	?	?	?
Pharmaceutical Services	5.73	164.1	177.6	-7.6	6.4	544.4	692.7	-21.41	9.16	944.4	621.9	51.86
Global Generics	89.92	2,573.20	2,345.40	9.71	89.82	7,644.00	6,866.50	11.32	88.38	9,111.10	7,844.90	16.14
Proprietary Products	0.45	12.9	10	29	1.65	140.6	24.4	476.23	0.47	48.2	774.4	-93.78
Others	3.89	111.4	121.1	-8.01	2.13	181.7	188	-3.35	2	205.8	162.6	26.57
Total PBIT	100	2,861.60	2,654.10	7.82	100	8,510.70	7,771.60	9.51	100	10,309.50	9,403.80	9.63
Less : Interest	?	0	0	–	?	0	0	–	?	0	0	–
Add: Other un-allcoable	?	-1,887.40	-2,359.20	20	?	-5,708.20	-5,703.30	-0.09	?	-7,426.00	-7,518.10	1.23
PBIT Margin(%)	?	?	?	?
Pharmaceutical Services	?	18.2	20.09	-188.72	?	19.32	23.59	-427.59	?	24.04	19.38	465.8
Global Generics	?	57.74	57.52	22.41	?	57.35	59.32	-197.13	?	58.87	56.74	213.43
Proprietary Products	?	100	80.65	1,935.48	?	99.01	87.14	1,187.12	?	92.16	97.42	-526.04
Others	?	86.42	85.76	65.87	?	76.73	77.56	-82.63	?	73.13	58.47	1,466.62
PBT	100	974.2	294.9	230.35	100	2,802.50	2,068.30	35.5	100	2,883.50	1,885.70	52.91

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